The Fact That the Exchange Is the Counterparty to Every

question 9

Multiple Choice

The fact that the exchange is the counterparty to every futures contract issued is important because it eliminates ________ risk.

• A) market
• B) credit
• C) interest rate
• D) basis

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Definitions:

Unfair Treatment

Acts of discrimination or injustice towards individuals or groups, often based on bias, prejudice, or favoritism.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Vicious Cycle

A sequence of reciprocal cause and effect where a negative situation is perpetuated, often leading to a deterioration of the situation over time.

Social Inequality

The unequal distribution of resources, opportunities, and privileges among individuals in a society, often based on race, gender, or social class.